First · NASDAQ:FUNC
First — First United — Shareholder Meeting (May 2024)
28 slides from First's shareholder meeting presentation, May 9, 2024
Slide 1: Annual Shareholders' Meeting May 9, 2024
st United Annual Shareholders’ Meeting May 9, 2024
Slide 2: Welcome and Introduction
2 Brian Boal Lead Independent Director Welcome and Introduction
Slide 3: Management Presentation
3 Carissa Rodeheaver President, Chief Executive Officer, and Chairman of the Board Management Presentation
Slide 4: Forward looking statements
4 Forward looking statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995 . Forward - looking statements do not represent historical facts, but are statements about management's beliefs, plans and objectives about the futu
Slide 5: Banking Industry Disruption
Banking Industry Disruption 5 ▪ Run on deposits at Silicon Valley and Signature Banks ▪ Negative social media and electronic access to funds fuel the deposit runs and create panic in the markets ▪ Failure of Silicon Valley and Signature Banks - March 2023 ▪ FDIC provides unlimited deposit insurance
Slide 6: Precautionary Actions
Precautionary Actions 6 ▪ Increased on balance sheet liquidity ▪ Heightened attention to deposits creates higher competition resulting in higher funding costs ▪ Deposit shift to FDIC insured products ▪ Margin compression due to higher funding costs and excess cash ▪ Strong loan demand but tightened
Slide 7: Operational Costs, Technology and Strategic Actions
Operational Costs, Technology and Strategic Actions 7 ▪ Increased costs of human talent and employee benefits ▪ Cybersecurity and fraud are high priority ▪ Enhanced technology and digital banking channels ▪ Strategic consolidation of four community offices results in acceleration of costs but will p
Slide 8: First United Corporation Remains Strong
First United Corporation Remains Strong 8 ▪ High levels of excess capital ▪ Access to over $350 million in liquidity ▪ Low interest rate sensitivity ▪ Diversified deposit and loan portfolios ▪ Long history of stable earnings ▪ Board and management risk oversight Excess capital and liquidity, low sus
Slide 9: Management Presentation
9 Tonya Sturm Senior Vice President and Chief Financial Officer Management Presentation
Slide 10: 2023 Financial Highlights
2023 Financial Highlights $18.8 Million Net Income (1) $2.81 Diluted EPS (1) 0.96% ROAA (1) 12.92 ROATCE (1) 3.26% NIM ▪ Total assets increased $57.7 million to $1.91 billion ▪ Consolidated net income (1) of $18.8 million ▪ Net interest income, on a non - GAAP, FTE basis decreased by $1.0 million in
Slide 11: Diversified Fee Income
11 Diversified Fee Income (1) See Appendix for a reconciliation of these non - GAAP financial measures Composition Trust and Brokerage 50% Service Charges 17% Net Gain on Loan Sales 2% Debit Card Income 22% Bank - owned Life Insurance 7% Other Noninterest Income 2% Non - Interest Income Mix 4Q2023 $
Slide 12: First Quarter Financial Highlights
First Quarter Financial Highlights $4.1 Million Net Income (1) $0.62 Diluted EPS (1) 0.85% * ROAA (1) 10.11% * ROATCE (1) 3.12% NIM ▪ Consolidated net income (1) of $4.1 million in 1Q24 compared to $4.4 million in 1Q23 and $5.5 million in fourth quarter 2023; pre - provision net revenue of $6.4 mill
Slide 13: Generating Reliable Growth
13 Generating Reliable Growth Pre - Provision Net Revenue ($ in millions) (1) $23.2 $30.8 $32.5 $25.9 $6.40 2020 2021 2022 2023 1Q2024 +5.5% YoY (1) See Appendix for a reconciliation of these non - GAAP financial measures $1.97 $3.54 $3.76 $2.80 $0.62 2020 2021 2022 2023 1Q2024 +6.2% YoY Diluted Ear
Slide 14: Solid Profitability
14 Solid Profitability (1) See Appendix for a reconciliation of these non - GAAP financial measures 11.92% 19.78% 19.94% 12.92% 10.11% 2020 2021 2022 2023 1Q2024 Long - term Strategic Target 13% - 15% 0.86% 1.35% 1.39% 0.96% 0.85% 2020 2021 2022 2023 1Q2024 Long - term Strategic Target 1.25% - 1.60%
Slide 15: Total Shareholder Return
15 Total Shareholder Return Source: S&P Global Market Intelligence; includes price change and reinvested cash dividends (1) For the period ended April 30, 2024 (2) S&P U.S. SmallCap Banks (Industry Group) Index USD Total Return. 1 - Year 3 - Year 5 - Year FUNC 58.11% 44.67% 56.65% S&P Bank Index (2)
Slide 16: Capital Management
16 Capital Management 16.08% 15.89% 16.12% 15.64% 15.83% 2020 2021 2022 2023 1Q2024 10.36% 10.80% 11.46% 11.30% 11.48% 2020 2021 2022 2023 1Q2024 12.61% 12.50% 12.96% 12.44% 12.60% 2020 2021 2022 2023 1Q2024 14.83% 14.64% 15.06% 14.42% 14.58% 2020 2021 2022 2023 1Q2024 CET1 Ratio Leverage Ratio Tier
Slide 17: Tangible Common Equity
17 Tangible Common Equity $17.17 $19.61 $20.90 $22.56 $23.08 2020 2021 2022 2023 1Q2024 6.97% 7.56% 7.59% 7.91% 8.07% 2020 2021 2022 2023 1Q2024 Tangible Book Value / Share TCE Ratio
Slide 18: Risk Drives Strategy
18 Risk Drives Strategy Cyber - Security & Fraud Monitoring Asset Quality Capital Liquidity Management Interest Rate Sensitivity
Slide 19: Strategic Pillars & Key Objectives
Strategic Pillars & Key Objectives Culture & Human Capital Digital & Data Analytics Market Awareness, Expansion & Opportunities Effective use of technology, marketing and communications, and an environmental focus underlies all strategic priorities. 19
Slide 20: Strong Investor Relations & Shareholder Engagement
Strong Investor Relations & Shareholder Engagement Clear long - term strategic plan with performance targets x Dedicated Investor Relations contact x Investor conferences and prospective investor engagement x Investor presentations and periodic outreach to institutional and retail shareholders x 20
Slide 21: Our Dedicated Management Team
21 Our Dedicated Management Team Carissa L. Rodeheaver Chairman of the Board, President & CEO 32+ years career with First United with in - depth industry, wealth management, financial and operational experience Jason B. Rush SVP & Chief Operating Officer 30+ years with in - depth industry, retail, r
Slide 22: Board of Directors
22 22 John F. Barr Independent Director Owner, Ellsworth Electric, Inc. Sanu B. Chadha Independent Director Managing Partner, M&S Consulting Christy M. DiPietro Independent Director, Audit Chair Chartered Financial Analyst, Hidden Cove Advisory Patricia A. Milon Independent Director Principal, Milfo
Slide 23: My Bank Mission
My Bank Mission 23 To enrich the lives of our employees, customers, communities and shareholders through uncommon service and effective financial solutions. • Contributing to the economic prosperity of our communities • Stability amidst the chaos of the economic, political, and regulatory environmen
Slide 24: Thank You!
y Bank is First United!” — Thank You!
Slide 25: Non-GAAP financial measures
25 This presentation includes certain non - GAAP financial measures, including pre - provision net revenue, net income, earnings per share (basic and diluted), return on average assets, return on average tangible common equity, tangible common equity, tangible assets, the ratio of tangible common eq
Slide 26: Non-GAAP Reconciliation, continued
26 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 3/31/2024 Weighted Average Common shares - basic (actual) (d) 7,003,955 6,710,463 6,649,740 6,685,676 6,675,181 6,703,805 6,714,267 6,649,493 6,643,898 6,643
Slide 27: Non-GAAP Reconciliation, continued
27 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 3/31/2024 Return on Average Assets (quarter and YTD annualized) Average Assets ( c) 1,613,669$ 1,765,148$ 1,801,711$ 1,924,119$ 1,892,111$ 1,930,093$ 1,954,1
Slide 28: Non-GAAP Reconciliation, continued
28 Non - GAAP Reconciliation , continued ($000s, except where otherwise noted) YTD 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 3/31/2024 Tangible Book Value per Common Share Total common equity, as reported (h) 131,047$ 141,900$ 151,793$ 161,873$ 152,868$ 155,156$ 154,990$ 161,873$ 1